Latest report by McKinsey's partner Jillian Tellez Holub and coauthors find that Americans’ outlays for recreational experiences such as stays at luxury hotels reached their highest level since 1960 after the lockdown ended. The brief uptick in spending on nonessential goods was followed by continued weakness.
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GLOIn the modern marketplace, there’s a discernible shift as customers increasingly prioritize experiences over tangible possessions. Rather than merely seeking material goods, consumers now crave meaningful interactions and memorable moments.
Despite the fact that US consumers’ spending on things rose slightly and spending on experiences slumped during the COVID-19 pandemic, the historic multidecade trend is still intact – “expereinces” are prefered to “things”.
Latest report by McKinsey’s partner Jillian Tellez Holub and coauthors find that Americans’ outlays for recreational experiences such as stays at luxury hotels reached their highest level since 1960 after the lockdown ended. The brief uptick in spending on nonessential goods was followed by continued weakness.
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Whether it’s dining at a restaurant with a captivating ambiance, embarking on an adventurous trip, or attending an immersive event, people value experiences that enrich their lives and create lasting memories. This trend reflects a deeper societal desire for authenticity, connection, and personal fulfillment, where the quality of an experience often outweighs the allure of material possessions. As businesses adapt to this changing landscape, those who prioritize crafting exceptional experiences stand poised to capture the hearts and loyalty of today’s discerning consumers.
Read more from McKinsey on latest trends in customer expereince here.
Source: GLO
